VAT on interstate transaction - E-1/E-2 sale

[K chandrakar]

we are in chhattisgarh our client in mumbai & supplier is also in mumbai. we placed an order to supplier to supply the consignment to our client of mumbai under 6(2) transection or sale in transit basis (E-1/E-2) basis. he is charging VAT for it. is it currect porcess. we are insisting him to dispatch the consignment against c form & but they are saying this is wrong process please explain it throurh proper notification & circular reference.

AI Summary

Business Queries VAT on Interstate Sale in Transit; Expert Suggests Clarification Based on CST Provisions, C Form Usage Discussed. A discussion on a forum involves a business in Chhattisgarh querying about the applicability of VAT on an interstate transaction involving a supplier and client in Mumbai. The business placed an order with the supplier for delivery to their Mumbai client under a sale in transit (E-1/E-2) basis, but the supplier is charging VAT instead of using a C form. The respondent suggests that the applicability of CST or local VAT depends on the intended movement of goods and advises consulting an expert for clarification based on the provisions of CST.